Purchase Life Annuity

Blue22

I am considering a PLA for an elderly relative who has come into a lump sum but how do I obtain any figures? The providers I have contacted so far will not even speak to me about it and are insisting I go through an IFA and the calculators do not cover her circumstances. At this stage I only want some ball park figures so I can decide if this may be a good option so don't want to waste time and money with a Financial Adviser.

jamesd

You might try emailing an IFA or three and asking them with minimal work to give you broadly indicative rates to help you assess whether using their services is likely to be a good idea. Try smaller firms that might be willing to negotiate with the PLA providers to get a better deal, there's real money to be made from doing this.

In general the purchased life annuity market has only few players and very limited competition so it may well not offer a good deal. But too much depends on her specific situation to know.

If you can give some more details of their situation we could at least provide some general guidance about possibly better options to consider.

Blue22

jamesd wrote: »

You might try emailing an IFA or three and asking them with minimal work to give you broadly indicative rates to help you assess whether using their services is likely to be a good idea. Try smaller firms that might be willing to negotiate with the PLA providers to get a better deal, there's real money to be made from doing this.

In general the purchased life annuity market has only few players and very limited competition so it may well not offer a good deal. But too much depends on her specific situation to know.

If you can give some more details of their situation we could at least provide some general guidance about possibly better options to consider.

Thanks for your response, Yes I have been trying this morning with FAs but I'm afraid I have been left rather disillusioned with the industry! Hope you don't mind but I have pm'd you with more details in case you have any other suggestions.

kkgree1

I've just helped my elderly mother-in-law purchase an immediate needs care plan through a specialist adviser.

We were in the same situation but they were able to estimate the cost based on similar cases they have dealt with previously. This then gave us the confidence to proceed and we've been very happy with the quotes and service provided. If you'd like details, I'd be happy to give them over PM.

Blue22

kkgree1 wrote: »

I've just helped my elderly mother-in-law purchase an immediate needs care plan through a specialist adviser.

We were in the same situation but they were able to estimate the cost based on similar cases they have dealt with previously. This then gave us the confidence to proceed and we've been very happy with the quotes and service provided. If you'd like details, I'd be happy to give them over PM.

Yes please if you could pm me details

dunstonh

Yes I have been trying this morning with FAs but I'm afraid I have been left rather disillusioned with the industry!

What happened in the phone calls that resulted in that?

Blue22

dunstonh wrote: »

What happened in the phone calls that resulted in that?

Well I admit it's my first ever dealings with any IFA but I found them to be very unclear about what they could offer. There appeared to be an assumption that I was totally financially illiterate whilst some of the things they said were just dumb, and showed they really had no idea of basic maths! Also all were insisting on a face to face meeting and felt several hundred pounds was a fair fee for an hours chat.

Ok I'll edit this, I've just found a very good FA!

mania112

I don't know of any IFA's that charge for the initial meeting, so keep looking you'll find one that will sit down with you for free.

There are several options, that's why they're being vague. They need to know more about the situation first. PLA is just one option, and frankly an increasingly uncommon one.

Hopefully you understand now that speaking to an IFA isn't a waste of time and money (as per your original comment).

xylophone

What are your relative's circumstances?

David.s_2

IFA's are committed to thorough investigation of client's finances. It's my experience they will always play safe and do the homework. Big fee but safe.

kidmugsy

How old? Would she/he consider buying a top-up for the state retirement pension?
https://www.gov.uk/statepensiontopup